ACC 405
Module 7 Project
Practice Problems and Solutions
Southern New Hampshire University
, lOMoARcPSD|51648332
ACC-405
Module Seven Project Practice Problems and Solutions
Problem 1. Circus City issued an 8%, 10‐year $2,000,000 bond to build a monorail mass transit system. The city received $1,754,217 cash from
the bond issuance on January 1, 2020. The bond yield is 10%. Interest is paid annually on December 31 of each year. Disclosure information
about capital assets is reported below.
Depreciation expense charged to governmental activities as follows:
Public Safety $ 55,000
General Government 72,000
Highways and Streets 25,000
Sanitation 17,000
$169,000
Circus City's governmental funds financial statements are as follows:
Downloaded by Benjamin Luca ()
, lOMoARcPSD|51648332
Downloaded by Benjamin Luca ()
Module 7 Project
Practice Problems and Solutions
Southern New Hampshire University
, lOMoARcPSD|51648332
ACC-405
Module Seven Project Practice Problems and Solutions
Problem 1. Circus City issued an 8%, 10‐year $2,000,000 bond to build a monorail mass transit system. The city received $1,754,217 cash from
the bond issuance on January 1, 2020. The bond yield is 10%. Interest is paid annually on December 31 of each year. Disclosure information
about capital assets is reported below.
Depreciation expense charged to governmental activities as follows:
Public Safety $ 55,000
General Government 72,000
Highways and Streets 25,000
Sanitation 17,000
$169,000
Circus City's governmental funds financial statements are as follows:
Downloaded by Benjamin Luca ()
, lOMoARcPSD|51648332
Downloaded by Benjamin Luca ()
